Gulf States: Economy

Iran's imposition of restrictions on shipping through the Strait of Hormuz created a significant backlog of vessels and disrupted global energy shipments in April. The tensions forced at least two loaded Qatari LNG tankers to turn back, marking the first such disruption to LNG transit through the strait since the start of the Israel-Hamas war. In response to regional supply disruptions, OPEC+ agreed in principle to increase its oil output starting in May, with the group specifically considering adjustments due to the impact of the Iran war on energy markets.

Separately, fires broke out at the Habshan gas facility and the Borouge petrochemicals plant in Abu Dhabi after falling debris from an intercepted attack hit the sites, killing one worker and injuring four others. Operations at the Borouge plant were suspended, though the Abu Dhabi National Oil Company stated customer gas supply was not interrupted and authorities reported the fires were controlled. Domestically, Dubai appointed Vikas Sardana to oversee its Metro and Tram networks and announced a new transport plan aimed at easing traffic between Dubai, Sharjah, and Ajman.